The Competition Authority has approved the merger of SPRON hf. and Kaupthing hf. The boards of both groups received a letter from the Competion Authority stating that the merger has been approved. The merger is also subject to the approval of the Icelandic Financial Supervisory Authority The creditors' and the shareholders meeting approval has already been obtained. Fur further information pleasse contact: Gudmundur Hauksson, CEO of SPRON, tel: +354 550 1213 Soffia Sigurgeirsdottir, Head of Investor Relations, tel: +354 550 1246